Nike Wins Big With Q4 Earnings

By Chris Lange Updated Jan 12, 10:32AM EST · Published Jun 30, 9:10AM EDT

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Nike Wins Big With Q4 Earnings — © Wikimedia Commons

When Nike Inc. (NYSE: NKE) reported its fiscal fourth-quarter financial results after the markets closed on Thursday, the apparel giant posted $0.60 in earnings per share (EPS) and $8.68 billion in revenue. That compares to consensus estimates from Thomson Reuters that called for $0.50 in EPS and revenue of $8.63 billion. In the same period of last year, Nike posted EPS of $0.49 and $8.24 billion in revenue.

In terms of the revenue breakdown, the Nike Brand revenue was up 7% at $8.1 billion and the Converse Brand revenues were up 10% at $554 million. The business segments within the Nike brand reported:

Footwear revenues totaled $5.47 billion, up 8% from last year.
Apparel revenues were $2.30 billion, an increase of 3%.
Equipment revenues were $335 million, a decrease of 14%.

During the fourth quarter, Nike repurchased a total of 14.9 million shares for roughly $820 million as part of the four-year, $12 billion program approved by the board of directors in November 2015. At the end of this quarter, a total $4.4 billion had been repurchased under this program.

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On the books, Nike’s cash, cash equivalents and short-term investments totaled $6.2 billion at the end of the quarter, up from $5.4 billion at the end of the same period last year.

Chairman, President and CEO Mark Parker commented:

NIKE continues to create both near-term wins in today’s dynamic environment and a lasting foundation for future growth. Through our Consumer Direct Offense, we’re putting even more firepower behind our greatest opportunities in Fiscal 2018. It will be a big year for NIKE innovation and we’ll bring those stories to life through deeper consumer connections in our key cities around the world.

Shares of Nike closed Thursday at $53.17, with a consensus analyst price target of $60.59 and a 52-week range of $49.01 to $60.33. Following the release, the stock was up 6.6% at $56.70 in early trading indications Friday.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.